INTERMET Receives Court Approval of Financing Commitment and Disclosure Statement
August 12 2005 - 3:23PM
PR Newswire (US)
Confirmation hearing set for September 26, 2005 TROY, Mich., Aug.
12 /PRNewswire-FirstCall/ -- INTERMET Corporation (INMTQ:PK), a
diversified manufacturer of cast-metal components, today announced
that the United States Bankruptcy Court for the Eastern District of
Michigan has approved the Company's motion to enter into an equity
financing Commitment Letter under which R2 Investments, LDC, and
Stanfield Capital Partners LLC have agreed to underwrite a $75
million equity investment in INTERMET in connection with INTERMET's
proposed Plan of Reorganization. The court also approved the
Company's amended Disclosure Statement. In addition, the court
approved the Company's proposed solicitation and balloting process.
INTERMET will distribute the Disclosure Statement and balloting
materials to all creditors in order to solicit their votes in
support of the Plan. The confirmation hearing with respect to the
Plan of Reorganization is scheduled to begin on September 26, 2005.
"We are pleased with the court's approval, which means that
INTERMET is moving closer to exiting bankruptcy," said Gary F.
Ruff, Chairman and CEO. "We look forward to emerging from Chapter
11 with a capital structure and strategy designed to strengthen our
leadership position in the industry." About INTERMET: With
headquarters in Troy, Michigan, INTERMET Corporation is a
manufacturer of cast-metal components for the automotive,
commercial- vehicle and industrial industries. The company has
approximately 5,300 employees worldwide. More information is
available on the Internet at http://www.intermet.com/ . Specific
information relating to the Chapter 11 cases filed by INTERMET and
certain of its domestic subsidiaries, including a copy of the
proposed Plan of Reorganization, can be found on the Internet at
http://www.administar.net/intermet . Cautionary Statement: This
news release includes forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements are not guarantees of future performance but instead
involve various risks and uncertainties. INTERMET's actual results
may differ materially from those suggested by its forward-looking
statements due to factors such as: the economic cost, management
distraction and lost business opportunities associated with
bankruptcy proceedings; INTERMET's continued access to its DIP
financing; the high cost of scrap steel and the possibility that
scrap steel costs will remain at high levels or continue to
increase, which would have further negative effects on INTERMET's
profitability, cash flow, liquidity and ability to borrow;
fluctuations in the cost of other raw materials, including the cost
of energy, aluminum, zinc, magnesium and alloys, and INTERMET's
ability, if any, to pass those costs on to its customers; pricing
practices of INTERMET's customers, including changes in their
payment terms resulting from the discontinuation of early payment
programs and continuing demands for price concessions as a
condition to retaining current business or obtaining new business,
and the negative effect that price concessions have on profit
margins; changes in procurement practices and policies of
INTERMET's customers for automotive components, including the risk
of the loss of major customers or the loss of current or
prospective vehicle programs as a result of INTERMET's financial
condition and prospects (or otherwise); possible inability to close
unprofitable plants or to transfer work from one plant to another
because of the related costs or customer requirements; general
economic conditions, including any downturn in the markets in which
INTERMET operates; fluctuations in automobile and light and heavy
truck production, which directly affect demand for INTERMET's
products; deterioration in the market share of any of INTERMET's
major customers; fluctuations in foreign currency exchange rates;
work stoppages or other labor disputes that could disrupt
production at INTERMET's facilities or those of its customers;
continuing changes in environmental regulations to which INTERMET
is subject, and the costs INTERMET will incur in meeting more
stringent regulations; factors or presently unknown circumstances
that may result in impairment of INTERMET's assets, including
further write-downs of its goodwill; and other risks as detailed
from time to time in INTERMET's periodic SEC reports. DATASOURCE:
INTERMET Corporation CONTACT: Mike Kelly of INTERMET Corporation,
+1-248-952-2500 Web site: http://www.intermet.com/
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